As the New Patriotic Party (NPP) government gets ready to hand over power to John Dramani Mahama’s newly elected administration, Finance Minister Dr. Mohammed Amin Adam has expressed confidence in the economy.
Speaking to journalists in Accra on Tuesday, December 17, 2024, Dr. Amin Adam stressed that despite recent domestic and international difficulties, Ghana’s economy is showing signs of substantial recovery and resilience.
“We are handing over a strong economy,” Dr. Amin Adam declared. “The first four years of this administration were marked by impressive performance, with the longest period of single-digit inflation, an average GDP growth rate of 7%, and strong external balances. Even though we faced challenges between 2021 and 2022, the economy has recovered strongly and faster than many anticipated.”
Highlighting important accomplishments, Dr. Amin Adam cited Ghana’s $8 billion in gross international reserves, which is equal to 3.5 months’ worth of import cover. The growth trajectory of the economy has returned to pre-COVID levels, he added, adding that this is more than the $6.2 billion in reserves that the NDC gave us in 2016.
“The growth rates in 2024—4.8% in the first quarter, 7% in the second, and 7.2% in the third reflect an average of 6.3%. This is significantly higher than the 3.4% average growth rate we inherited in 2016,” he noted.
He said the private sector credit growth also showcased the recovery, with nominal growth reaching 28.7% in October 2024, a sharp turnaround from the contraction of 7.5% recorded in the same period in 2023. “In real terms, private sector credit grew by 5.5% in October this year, compared to a contraction of 31.6% last year,” Dr. Amin Adam explained.
“These are significant improvements from the deficits we saw in 2016, including a trade balance deficit of $1.8 billion and a current account deficit of 6.6% of GDP,” he stated.
Dr. Amin Adam acknowledged the difficulties with inflation, pointing out that headline inflation had dropped from a peak of 54% in December 2022 to 23% in November 2024. “Inflation is still high, but the measures we implemented have significantly stabilized prices and eased the hardship Ghanaians faced,” he assured.
According to Dr. Amin Adam, the government of Ghana has made progress in lowering the amount of public debt.
“The total public debt decreased by GH₵46.8 billion from GH₵807.79 billion in September 2024 to GH₵761.01 billion in October 2024. This reduction brought the debt-to-GDP ratio down from 79.2% to 74.6%, and we are on track to reduce it further to 55% in net present value terms, ensuring long-term debt sustainability,” he explained.
Dr. Amin Adam called the assertions that the nation is in financial distress “propaganda” and rejected them. According to him, Ghana’s economic foundation is stronger now than it was in 2016, when the NPP took power.“We hope the incoming government will continue with the policies we have implemented to sustain this recovery and ensure that Ghana’s debt sustainability targets are met,” he concluded.
